Learn about Foreclosure
Mortgage foreclosure is the process a bank or mortgage company uses to take back ownership of real estate when the homeowner hasn't complied with the mortgage agreement. Most often, that simply means that the homeowner couldn't keep up the mortgage payments.
Mortgage foreclosure is the process a bank or mortgage company uses to take back ownership of real estate when the homeowner hasn't complied with the mortgage agreement. Most often, that simply means that the homeowner couldn't keep up the mortgage payments.
The foreclosure process may differ depending upon your state. Generally, the downward spiral into foreclosure begins when your loan payment becomes 16 days overdue. At that point, your mortgage lender may try to contact you to work out a repayment schedule to bring your loan current. If your mortgage payment becomes 30 days late and the next month's payment looks suspect, the collection calls will come on a regular basis. If your payments fall 90 days behind, the mortgage company will likely refer your mortgage to an attorney that will start formal foreclosure proceedings
.
Again, the foreclosure process varies by state, and the best source of information about how the foreclosure process might proceed in your case is a local attorney. Generally, the lender must serve a notice of default on the homeowner after a certain time period from when the payment becomes past due. This time period varies by state. The notice will give the homeowner a time period and an amount necessary to be paid in order to "cure" the default and avoid foreclosure. If the homeowners cannot pay the delinquency and costs of foreclosure within this time, then the lender will set a foreclosure sale date. The lender will then sell the property at public auction. If the sale price isn't enough to cover the outstanding
debt and costs associated with the sale, the mortgage lender can and probably will pursue a deficiency judgment-a court order requiring you to pay the remaining balance to the lender.
The foreclosure process may differ depending upon your state. Generally, the downward spiral into foreclosure begins when your loan payment becomes 16 days overdue. At that point, your mortgage lender may try to contact you to work out a repayment schedule to bring your loan current. If your mortgage payment becomes 30 days late and the next month's payment looks suspect, the collection calls will come on a regular basis. If your payments fall 90 days behind, the mortgage company will likely refer your mortgage to an attorney that will start formal foreclosure proceedings
.
Again, the foreclosure process varies by state, and the best source of information about how the foreclosure process might proceed in your case is a local attorney. Generally, the lender must serve a notice of default on the homeowner after a certain time period from when the payment becomes past due. This time period varies by state. The notice will give the homeowner a time period and an amount necessary to be paid in order to "cure" the default and avoid foreclosure. If the homeowners cannot pay the delinquency and costs of foreclosure within this time, then the lender will set a foreclosure sale date. The lender will then sell the property at public auction. If the sale price isn't enough to cover the outstanding
debt and costs associated with the sale, the mortgage lender can and probably will pursue a deficiency judgment-a court order requiring you to pay the remaining balance to the lender.
The property may be "redeemed" by the homeowner by paying all delinquencies and costs, up to the time of sale and in some states, for a period after sale. This redemption period varies by state. The law in most states gives the homeowner every opportunity to stop the foreclosure process. As a matter of fact, homeowners have options right up to the minute that the auctioneer's gavel comes down.
Some of the most common options include refinancing to roll in past-due payments and "start fresh" with your mortgage debt, a debt workout plan, or Chapter 13 bankruptcy. Refinancing is usually not an option since mortgage companies will generally not lend to someone that is currently delinquent on their mortgage payments. Many people facing foreclosure find that Chapter 13
bankruptcy removes the immediate threat of foreclosure and allows them to catch up past due mortgage payments over time.
bankruptcy removes the immediate threat of foreclosure and allows them to catch up past due mortgage payments over time.
Determination and Discipline can Prevent Foreclosure
The United States has experienced a truly remarkable boom in the housing market over the last few years. Now that the market is undergoing a correction though, many families are in increased danger of losing their homes to foreclosure.
Generally there are two types of things that your lender can do for you in order to help you through a tough spot so that you can keep your home and your credit scores intact. In the short term, the lender can allow you to put off making payments or make payments at a reduced rate for a certain amount of time until you're back on your feet. This is a good tactic to use if you've been temporarily disabled by an injury or an illness. You will still have to pay a little more each month for a while afterward, but this process, which is called a forbearance, will allow you to recover from a mishap and keep your home
There are also several different solutions to longer term financial problems. The most talked about solution is refinancing . When you refinance your mortgage it means that you get a new mortgage- often through a different lender- and use it to pay off your existing mortgage. This tactic has a number of benefits. For example, you may be able to get your new mortgage for a lower interest rate and possibly one that will stay stable over the course of the lifetime of the mortgage. Another benefit is that you might be able to get your existing lending institution to accept a payment that's less than the amount that you originally borrowed to pay off the mortgage. This effectively lessens the amount that you'll have to pay back!
Another possibility is to modify your existing mortgage. With mortgage
modification, you deal with your lender so that you and your lender can agree to a lower interest rate or a longer payback period. It's a lot like refinancing, but without having to get another lender involved.
The least favorable possibility, but one that's better than foreclosure, is to sell your house. If you really can't make the payments, and probably won't be able to make the payments for the foreseeable future even with refinancing or mortgage modification, you can ask your lender to suspend payments while you're actively trying to sell your house. Once the house is sold, the proceeds of the sale are used to pay off the lender. This is a much more satisfactory situation for the lender than foreclosure because the lender is likely to get more money out of it, and it's a better situation for you because your credit and dignity are preserved.
modification, you deal with your lender so that you and your lender can agree to a lower interest rate or a longer payback period. It's a lot like refinancing, but without having to get another lender involved.
The least favorable possibility, but one that's better than foreclosure, is to sell your house. If you really can't make the payments, and probably won't be able to make the payments for the foreseeable future even with refinancing or mortgage modification, you can ask your lender to suspend payments while you're actively trying to sell your house. Once the house is sold, the proceeds of the sale are used to pay off the lender. This is a much more satisfactory situation for the lender than foreclosure because the lender is likely to get more money out of it, and it's a better situation for you because your credit and dignity are preserved.
Cutting your spending is extremely important when it comes to showing your lender that you're serious about doing your part to keep your home. A lender will be much less likely to let you skip payments or give you a lower interest rate if it sees that you're continuing to spend money on cable TV, expensive restaurants, and luxury cars
Foreclosure Options and Solutions
Most people facing foreclosure are most concerned about saving their homes. If your primary goal is to stop foreclosure in order to keep your house, then you'll most likely want to consider Foreclosure Mitigation Services which usually result in a restructuring of your current delinquency. Other options may include refinancing or Chapter 13 bankruptcy. However, if you know that you can't afford to keep your house and you are looking for a way to avoid a deficiency judgment and minimize damage to your credit, other options to stop foreclosure are available.
Facing mortgage foreclosure is scary, and it can be hard to make informed decisions to stop foreclosure when under pressure. Make sure that you understand all of your options to stop foreclosure, which may include:
Facing mortgage foreclosure is scary, and it can be hard to make informed decisions to stop foreclosure when under pressure. Make sure that you understand all of your options to stop foreclosure, which may include:
Restructuring Your Delinquency
. In order for you to be able to qualify for this option, you must be able to afford your mortgage. In other words, your current income must be sufficient to meet your financial obligations. If your delinquency was caused by a one-time event like illness, loss of job or financial mismanagement, this may be your best option.
. In order for you to be able to qualify for this option, you must be able to afford your mortgage. In other words, your current income must be sufficient to meet your financial obligations. If your delinquency was caused by a one-time event like illness, loss of job or financial mismanagement, this may be your best option.
Deed in Lieu of Foreclosure
May Be an Option to Stop Foreclosure. If you're sure that you can't afford to keep your house, you may be able to reach an agreement with the mortgage holder whereby you simply give it back and stop foreclosure. The mortgage holder would agree to accept the deed as full
settlement and cancel the remainder of your debt.
Whether or not this is a good option to stop foreclosure for you depends upon your equity in the house, the amount of outstanding debt, and what other options are available to you. Of course, the mortgage holder won't always be willing to enter into such an agreement, but if
there is little likelihood that you'll be able to pay a deficiency judgment, the lender may decide that it's better to avoid the costs of a foreclosure proceeding, stop foreclosure and accept the deed as full settlement
May Be an Option to Stop Foreclosure. If you're sure that you can't afford to keep your house, you may be able to reach an agreement with the mortgage holder whereby you simply give it back and stop foreclosure. The mortgage holder would agree to accept the deed as full
settlement and cancel the remainder of your debt.
Whether or not this is a good option to stop foreclosure for you depends upon your equity in the house, the amount of outstanding debt, and what other options are available to you. Of course, the mortgage holder won't always be willing to enter into such an agreement, but if
there is little likelihood that you'll be able to pay a deficiency judgment, the lender may decide that it's better to avoid the costs of a foreclosure proceeding, stop foreclosure and accept the deed as full settlement
Sell the Property to Stop Foreclosure!
If you have significant equity in your house, selling it is a good option because it may allow you to stop foreclosure and walk away with money in your pocket. Where equity is limited (or non-existent), it can be difficult to sell the property because of the need to cover the
mortgage and the other associated costs of a sale. This is especially true if you're working with a realtor, since you'll have to cover a commission as well.
In some cases, the mortgage holder may agree to a short sale. That means the lender will agree to accept less than the full amount of the mortgage. This allows you to stop foreclosure and avoid a deficiency judgment, while the lender recovers the bulk of the amount due
without having to pursue foreclosure proceedings.
If you have significant equity in your house, selling it is a good option because it may allow you to stop foreclosure and walk away with money in your pocket. Where equity is limited (or non-existent), it can be difficult to sell the property because of the need to cover the
mortgage and the other associated costs of a sale. This is especially true if you're working with a realtor, since you'll have to cover a commission as well.
In some cases, the mortgage holder may agree to a short sale. That means the lender will agree to accept less than the full amount of the mortgage. This allows you to stop foreclosure and avoid a deficiency judgment, while the lender recovers the bulk of the amount due
without having to pursue foreclosure proceedings.
Surrender the Property in Chapter 7 Bankruptcy & Stop Foreclosure!
Unlike Chapter 13 bankruptcy, Chapter 7 bankruptcy does not provide a means to save your house from foreclosure. The automatic stay entered in most bankruptcy cases will stop foreclosure proceedings, but the Chapter 7 process does not provide a mechanism by which
you can catch up on your past-due payments and keep your home.
However, if you've been unable to work out an alternative and you know that you cannot afford to keep your house, Chapter 7 bankruptcy has some advantages. First, the automatic stay will temporarily stop foreclosure proceedings, giving you time to make necessary
arrangements. Second, a Chapter 7 bankruptcy will eliminate most of your unsecured debt (credit card debt, outstanding medical bills, etc.), so that you may be more able to meet your regular living expenses. Finally-and perhaps most importantly-Chapter 7 bankruptcy can
eliminate any deficiency judgment, so that you don't end up losing your house and still making payments to the lender.
Unlike Chapter 13 bankruptcy, Chapter 7 bankruptcy does not provide a means to save your house from foreclosure. The automatic stay entered in most bankruptcy cases will stop foreclosure proceedings, but the Chapter 7 process does not provide a mechanism by which
you can catch up on your past-due payments and keep your home.
However, if you've been unable to work out an alternative and you know that you cannot afford to keep your house, Chapter 7 bankruptcy has some advantages. First, the automatic stay will temporarily stop foreclosure proceedings, giving you time to make necessary
arrangements. Second, a Chapter 7 bankruptcy will eliminate most of your unsecured debt (credit card debt, outstanding medical bills, etc.), so that you may be more able to meet your regular living expenses. Finally-and perhaps most importantly-Chapter 7 bankruptcy can
eliminate any deficiency judgment, so that you don't end up losing your house and still making payments to the lender.
Are You A Victim Of A Predatory Mortgage Foreclosure?
Help is available to borrowers who have claims against their lenders for violating the Truth in Lending Act and other laws regulating credit transactions. Such violations may be a defense to a mortgage foreclosure. If there is a violation, you may be able to void the mortgage and apply 100% of your payments to principal. You may also be able to recover money damages.
If the answer to any of the following questions is "yes," please arrange for a professional auditor to review your loan documents (including demand and collection letters, correspondence, and any account histories or monthly statements).
1. Have you repeatedly refinanced your loan? Was the last refinance within the last 3 years? (A common predatory practice is "flipping," which involves "repeatedly refinancing a mortgage loan without benefit to the borrower, in order to profit from high origination fees, closing costs, points, prepayment penalties and other charges, steadily eroding the borrower's equity in his or her home.").
2. Did you increase rather than lower your rate upon refinancing?
3. Are you paying an interest rate in excess of 9.5%?
4. Was the loan obtained to pay for home improvement work that was not done properly, or even at all?
5. Have you had problems with the mortgage company regarding untimely posting of monthly payments? Sudden increases in payments? Adding amounts to your balance for insurance, "property preservation," or other "advances"? Does your principal balance never seem to go down?
6. Were you charged high closing costs (points and fees) on the mortgage?
7. Did the terms of the mortgage change to your detriment at the last minute before the closing?
8. Did the lender pay money to your mortgage broker (look on your HUD-1 Settlement Statement for a "premium" or POC (paid out of closing) "YSP" or "yield spread premium")?
9. If you have an adjustable rate mortgage, were any adjustments done improperly? Can you even tell if the adjustments were correct or not?
10. Does your loan contain a prepayment penalty?
11. Do you believe you were treated unfairly by your mortgage company? Has correspondence with the mortgage company gone unanswered? (Mortgage companies have a statutory obligation to respond to complaints and requests for explanations of accounts. Often, they don't. Each failure may entitle you to $2,000. If your claim against the mortgage company may exceed the number of monthly payments you allegedly missed, the mortgage company may not be able to prove that you are in default.)
12. Did all collection letters sent to you by debt collectors comply with the Fair Debt Collection Practices Act? (Up to $1,000 more if they did not.)
13. Did you (or anyone else who has an ownership interest in and lives in the house) receive a "notice of right to cancel" that was not completely filled out?
14. Did you receive your copy of the loan documents at the closing (as opposed to being sent to you later or did the closing agent send you signed copies at all)?
15. Did you sign a document at the closing stating that you were not canceling?
16. Did the closing occur by mail, or at your home, or in another city?
There is a common assumption (among judges, borrowers, and the public) that mortgage companies do not desire to foreclose and acquire real estate. This assumption is no longer well founded.
There are an increasing number of "scavengers" that buy bad debts, including mortgages, for a fraction of face value and attempt to enforce them. Such entities profit by foreclosure. "Mortgage sources confide that some unscrupulous lenders are purposely allowing certain borrowers to fall deeper into a financial hole from which they can’t escape a foreclosure.
Help is available to borrowers who have claims against their lenders for violating the Truth in Lending Act and other laws regulating credit transactions. Such violations may be a defense to a mortgage foreclosure. If there is a violation, you may be able to void the mortgage and apply 100% of your payments to principal. You may also be able to recover money damages.
If the answer to any of the following questions is "yes," please arrange for a professional auditor to review your loan documents (including demand and collection letters, correspondence, and any account histories or monthly statements).
1. Have you repeatedly refinanced your loan? Was the last refinance within the last 3 years? (A common predatory practice is "flipping," which involves "repeatedly refinancing a mortgage loan without benefit to the borrower, in order to profit from high origination fees, closing costs, points, prepayment penalties and other charges, steadily eroding the borrower's equity in his or her home.").
2. Did you increase rather than lower your rate upon refinancing?
3. Are you paying an interest rate in excess of 9.5%?
4. Was the loan obtained to pay for home improvement work that was not done properly, or even at all?
5. Have you had problems with the mortgage company regarding untimely posting of monthly payments? Sudden increases in payments? Adding amounts to your balance for insurance, "property preservation," or other "advances"? Does your principal balance never seem to go down?
6. Were you charged high closing costs (points and fees) on the mortgage?
7. Did the terms of the mortgage change to your detriment at the last minute before the closing?
8. Did the lender pay money to your mortgage broker (look on your HUD-1 Settlement Statement for a "premium" or POC (paid out of closing) "YSP" or "yield spread premium")?
9. If you have an adjustable rate mortgage, were any adjustments done improperly? Can you even tell if the adjustments were correct or not?
10. Does your loan contain a prepayment penalty?
11. Do you believe you were treated unfairly by your mortgage company? Has correspondence with the mortgage company gone unanswered? (Mortgage companies have a statutory obligation to respond to complaints and requests for explanations of accounts. Often, they don't. Each failure may entitle you to $2,000. If your claim against the mortgage company may exceed the number of monthly payments you allegedly missed, the mortgage company may not be able to prove that you are in default.)
12. Did all collection letters sent to you by debt collectors comply with the Fair Debt Collection Practices Act? (Up to $1,000 more if they did not.)
13. Did you (or anyone else who has an ownership interest in and lives in the house) receive a "notice of right to cancel" that was not completely filled out?
14. Did you receive your copy of the loan documents at the closing (as opposed to being sent to you later or did the closing agent send you signed copies at all)?
15. Did you sign a document at the closing stating that you were not canceling?
16. Did the closing occur by mail, or at your home, or in another city?
There is a common assumption (among judges, borrowers, and the public) that mortgage companies do not desire to foreclose and acquire real estate. This assumption is no longer well founded.
There are an increasing number of "scavengers" that buy bad debts, including mortgages, for a fraction of face value and attempt to enforce them. Such entities profit by foreclosure. "Mortgage sources confide that some unscrupulous lenders are purposely allowing certain borrowers to fall deeper into a financial hole from which they can’t escape a foreclosure.
Find out what the Government is doing about the "Housing Crisis" and what
can be done to prevent a "Foreclosure"...Read more on Financial Page
can be done to prevent a "Foreclosure"...Read more on Financial Page
Better Credit Network
Avoid foreclosure
We can’t help every homeowner to avoid foreclosure, but Mr. Lehmann’s success rate
at obtaining an affordable solution is 98% if your application is accepted. The application and initial consultation is free of charge, and
you could learn a lot! This process is simple and will only take you a few minutes.
We can’t help every homeowner to avoid foreclosure, but Mr. Lehmann’s success rate
at obtaining an affordable solution is 98% if your application is accepted. The application and initial consultation is free of charge, and
you could learn a lot! This process is simple and will only take you a few minutes.
Bad Credit Debt Consolidation
Our goal is to help people get out of debt as soon as possible and give advice
http://www.debtconsolidationlive.co.uk/
Our goal is to help people get out of debt as soon as possible and give advice
http://www.debtconsolidationlive.co.uk/
